Yes, it does dilute. But to what degree, I am unsure. From what I've read, it will change the black to lav and the red to a straw color. I'm not well versed in chicken genetics at all. I'm not sure if the Mh enhancers in the black blrw counteract the lav diluter. Was hoping someone with enough knowledge of it would know one way or another if it would completely dilute it, or not, because of the Mh enhancer.